function [v1] = valfunc_I(v2, s,y,param,glob,options)
% inputs 

    F            = menufun('F',s,y,param,glob,options);              
    L            = menufun('L',s,y,param,glob,options);       
    adj_cost     = menufun('C',s,y,param,glob,options);
    sa           = [L, s(:,2)];
    
    cv           = param.beta*v2(sa); 
    v1           = F - adj_cost + cv;

    
end